Eleving Group S.A. ($OT8)

Good afternoon, and welcome to Eleving Group's earnings call. We will start with the company's presentation followed by a live Q&A session. [Operator Instructions] For your convenience, we are recording this session and replay will be available shortly after the call. That being said, I'm turning the call over to our host, Eleving Group's CEO, Modestas Sudnius; and CFO, Maris Kreics, please.

Thank you very much. Good afternoon, everyone, on the call. So my name is Modestas Sudnius. I'm the CEO of Eleving Group. Today, together with myself, we have, as always, our CFO, Maris Kreics. Together, today, we're going to walk you through first 3 months of 2026 results. We will, as always, compare them to the previous periods. We'll also look at not only in the financial numbers, but also in operational figures, key highlights. And of course, we'll touch upon what's upcoming in next quarters. Still before diving into slides, maybe what's the key highlights and how is this quarter different from the others. So one thing what you're going to see that the momentum of growing issuances increasing portfolio has not stopped in the first quarter because traditionally, first quarter is a little bit lower as it comes after heavy sales season in holiday period. However, this year, we managed to maintain momentum, which is a very welcome situation and really demonstrated very strong growth in top line. So now we can start the presentation, start with Slide #4, I believe, group performance. As always, we're looking at 2 key metrics, net portfolio and revenue development. So if we start with net portfolio development, you can see that comparing first quarter this year with the first quarter of last year, portfolio has grown really significantly, almost 30%, so 28.8%. In other words, we have added more than EUR 100 million of net loan portfolio. And currently, our net loan portfolio stands at EUR 477.8 million. What's also welcoming sign is that this growth comes from diverse channels. All channels have grown in this period but probably the one which stands out the most is consumer loan products. So -- and then the main driver here was the new products what we have launched in our vehicle finance markets. And as we'll show later, now in pretty much all of our markets, except for one, we have consumer finance products. But nonetheless, also worth to mention a very successful flexible vehicle financing products growth, which is mainly motorcycle financing and growth comes mainly from Kenya. So very successful period for this market. And also device financing already stands at EUR 16.5 million portfolio, so a sizable addition. Similar trends, you can see on the revenue development side, which actually was good but it grew even at a higher percentage at [ EUR 32.8 million ] and for first quarter was at EUR 77.8 million. what does this growth shows us? First of all, that our yield and return on the portfolio is even growing. And it can be explained mainly because the growth came from shorter duration, higher yielding products, mainly smartphone financing and consumer loans. So overall, especially given that this is a first quarter and even actually looking on net portfolio growth on a quarter-to-quarter basis, we can see that within the first quarter, portfolio grew by 7.1%. So this is very strong result and kind of it gives good expectations for the remaining part of the year. If we look at the last bullet point, which is our net profit, here, situation is a little bit different. We actually were pretty much flat. The net profit for first quarter was EUR 5.9 million comparing to last year, which was EUR 6.4 million. So why there is no growth here? So a few important things to take into account. First of all, looking at growth before foreign exchange movements, where we see already a better view. So the result was at EUR 10.2 million versus EUR 8.7 million last year. So obviously, there were a bit higher currency movements in the first quarter due to different macroeconomic reasons than the year before. And then I think it comes from higher impairments, what we had in the first quarter, and we'll provide a bit more detailed information, but -- at the same time, we don't see any red flags for the business. It's, I would say, a natural process because once you grow portfolio so quickly and especially we've seen this growth in the last 2 quarters, it's natural that we have some of the front-loaded impairment costs. And on top of that, since we have launched quite a few new products, it still takes time to do certain calibration activities and you can't have perfect underwriting from day 1 for those products. But overall, we see that top line growing very solidly. And as it comes to net profit, we do see and we do expect that in upcoming quarters, this result on a quarterly basis will increase -- will be increased quite significantly. So with that, let's go to the next slide, Slide #5, business segment development. So a little bit reiterate on this slightly changed strategy. So when it comes to consumer lending products, here, you can see that now in all Baltic markets, we already have consumer loan products. Previously, it was nonexistent. So the latest market, which was added was Lithuania, where already at the end of first quarter, we have EUR 1.3 million of portfolio. Looking at other markets, so Romania has by far the fastest growth here. So already in -- at the end of the quarter, we had around EUR 40 million net loan portfolio and installment loans here. And if we look at device financing products rollout, so here, we're seeing a bit of slowdown. And now in upcoming quarters, main focus will be on improving the unit economics, the profitability of those products. So Kenya still demonstrates a bit of higher potential as being a bigger market, but -- but one should expect lower growth rates in this segment going forward. And looking at overall split of portfolio, so with newly launched installment loan products, installment loan part slightly went up in last quarters. And currently, 59% of portfolio is in vehicle and device financing and 41% is in consumer financing. If we move forward, a few growth highlights. Here, probably the main highlight is in sales part, just the sales of our first quarter. Again, comparing quarter-to-quarter, I would say, really very strong results, almost 42% growth. So EUR 136 million worth of loans issued, so all-time best result for the company. And as I just mentioned before, it comes from multiple sources, multiple initiatives what has been launched over the last 12 months. From product launch, so I already mentioned the installment loans in Lithuania. Also worth to mention that technically in second quarter in April of this year, we have also launched third device financing market in Tanzania. So we started a bit less than 6 months ago, our operations in Tanzania in general. So far, we started with motorcycle financing, which actually shows really good and promising results. We even need to, I would say, even limit our growth because demand is definitely there, opportunities there, but we don't want to overgrow because we still need to strengthen the team. We still need to collect certain data points. But first initial results having around EUR 1.5 million of motorcycle loans issued in the first quarter shows that so far, the development is good. And on top of that, we've added mobile phone financing. So now we're going to have 3 markets where this product is available. And in terms of new expansion into new markets, so our plan has not changed. We are in, I would say, middle to late stages of launching 2 new markets, one in European side and one in African side. But traditionally, we will make it public once we issue first loan in each of the markets. But that's really upcoming in the nearest future. And also worth to talk a bit about business optimization. So with significant growth, we don't want to lose track on our cost base. And we always been and want to kind of remain very cost cautious organization. So we've -- especially in the first quarter, we've looked at different pockets for additional cost optimizations, functions which could be merged, where additional automation could make our operations more efficient, like what our IT solutions could be introduced to just have a lower cost base. And I believe we've done a very extensive exercise with main actions done in March and April, where it obviously came with also some of the one-off costs, but we are planning into second quarter with a leaner cost base. And especially in the first quarter, when I think this will be the quarter when we'll see full this optimization effect, we do expect that this will allow us to further drive our cost-to-income ratio down. So with that, let's move to the next slide, global scope. As always, we're maintaining very well-diversified operations. That's very important. Most of the markets grow and then grow at a good rate. Of course, rates differ geography to geography. But what's very important that trajectory is the same in all the markets. So it's A few markets to mention and to call out. So if we look on the European side, worth to mention Latvia, where if we include Primero brand, which just as a reminder, this is just a lending company, which we have as a joint venture with a local bank. So in a combination, we already have EUR 71 million of net loan portfolio in Latvia. So very, very significant growth and biggest part of that comes from consumer loan product. Then worth mention biggest on-balance sheet vehicle finance European market, which is Romania, where, again, we are already above EUR 60 million. So also strong growth. And another market is Romania, where in the first quarter of this year alone, we added more than 10% of additional net loan portfolio, and we're already at EUR 25 million. On African side, obviously, the market which stands out the most is Kenya. And the biggest part of portfolio there lies in motorcycle taxi financing product, which continues very steady growth. But nonetheless, 2 other products, car financing as well as smartphone financing adds a sizable portion there and we have a very well-balanced business there. And also, we do enjoy a quite unique position in the market, having very strong sales channels, having that branch network of ours, and we do see that growth trend should continue there. Two other markets worth mentioning and both of them have grown more than 20% per quarter. But of course, from a smaller base, this would be Zambia and Lesotho. So there we already a few quarters ago, we had all the necessary infrastructure in place, and these markets are growing very nicely. Just as a reminder, there, our main product is the so-called deduction at source or payroll loans where we're primarily financing the government employees. and deducting monthly payments from their salaries automatically. So quite a good product. So as a combination, I guess, diversification stays as one of our core priorities, and we're very well achieving that among our [ 17 ] markets. Now let's move to next slide, nonfinancial KPIs. Here, you'll see, I think, a repeating story to what I just said in previous slides. If we look at -- and first of all, just figures here show quarter-on-quarter basis, not year-on-year basis. So let's start from the applications received for both product groups, it has went up by more than 10% in first quarter. So good indication shows that organic demand is there. It shows that our marketing activities and sales channels works well and efficiently. When it comes to conversion rates, so again, it's not bad to see that conversion rate is kind of going down slightly. There's multiple reasons for that. In general, first quarter tend to have slightly lower quality of leads because many customers come after kind of heavy spending season in fourth quarter. So we're also a bit more cautious. And on top of that, especially on the consumer finance side, since we launched many new products, we're adding many new sales channels. Still, they need to be calibrated and we are in the first month a bit more careful and a bit more -- just having a bit lower approval rate for certain new sales channels. But overall, I think mix of fees still allowed us to grow our issuances across the board and achieve this 30% -- almost 30% portfolio growth year-over-year. So summing up this part of presentation, once again, can just say that first quarter started with very strong top line growth, and we believe that profit will also follow the same trajectory in upcoming quarters. But to dig deeper into that, handing over to Maris to walk through the financial numbers.

Thank you, Modestas. Moving on with Slide 9 here, as shown in the presentation, as always, let's start with EBITDA and adjusted EBITDA development on a quarter-to-quarter basis comparing with the quarterly development for the same period of year 2025. So what we see here, we actually see an excellent growth in the EBITDA. So it's a 30% increase compared to the equal period in year 2025 versus this quarter. And basically, that outstanding growth in EBITDA is well supported by the net loans issued growth and also net loan portfolio growth, which actually grew at a similar pace. Continuing with the net profit and net profit before ForEx, so as mentioned before, net profit development was lower than it was -- than it can be seen in EBITDA. Our net profit largely remained flat if we compare to the same period of year 2025. So we're looking at EUR 5.9 million versus EUR 6.5 million in the year before. Nevertheless, if we look at net profit before ForEx, there we actually see a 17% increase over the same comparative period. The net profit obviously has been growing, but it has been growing at a lower pace than EBITDA. And the main driver for that has been the foreign currency exchange movements, which were at a higher pace than they were in the year 2025. Of course, partially explained by the overall geopolitical situation and currency pairs movement, but also the fact that we operate with a bigger portfolio in general and bigger portfolio, specifically in non-euro markets as well. If we look at the equity development, so we ended the quarter with EUR 109.7 million of total equity, book value of equity. And the main movements within the equity apart from organic growth or profit retention were small amount of dividends. So these are dividends distributed to minority shareholders because what we did during the first quarter is we actually upstream the dividends from our subsidiaries up to the parent entity in Luxembourg, which will actually make the payment to its shareholders in the month of June. We'll have more details on that in the following slides. At the same time, we continue to also make strategic minority share repurchases. So all this is being done with a single goal in mind, basically to increase the Luxembourg shareholders' profit -- share of profits in the company. Moving on to the equity and total assets ratio. So we had 18% of this ratio as of end of March of this year. This ratio basically was flat if we compare to the end of last year. At the same time, you can see how the ratio has slightly compressed if we compare to the year 2024 as well as end of March 2025. And the main reason behind this is already mentioned the net loan portfolio growth, which was excellent, especially over the last 2 quarters. So what essentially is happening, our total assets or net loan portfolio growth actually outpaces the growth in net profit. But of course, all this is being done with the future goal in mind that the profits will follow respectfully in the later quarters. If you look at the return on equity ratio, so that ratio was 26.3% for the first 3 months of this year. Again, largely flat if we compare to the 2025 ratio, a bit lower than you would see that in year 2024 as well for the first 3 months of 2025. But I want to highlight the fact that here, we're looking at the average equity at the beginning of the period and end of period. So years 2024 and also 3 months of 2025 are not fully comparable because we're looking for the last 12 months period for these respective periods. And basically, these were having equities before IPO. So a bit lower starting base, which is not fully like-for-like comparison, fair comparison with what we are seeing currently. But of course, our mid- and long-term goal would be to remain or actually move closer to the 30% return on equity ratio. And lastly, I wanted to touch upon also on the cost-to-income ratio. So we're really happy to report a decreasing cost-to-income ratio, and that ratio has been decreasing over the last quarters consistently. So now we're looking at 36.8% of admin plus selling expenses over our revenue. And of course, main driver for this decrease of this ratio has actually been the increase in revenue primarily. But at the same time, we're also controlling the expenses. As I already mentioned before, in earlier slides, we have undergone a group-wide cost optimization exercise during the month of March. And we do expect then these full benefits now to be realized during Q2 and Q3 of this year. So further improvements in cost-to-income ratio are expected in the following quarters. Now if we move to the next slide, please, Slide 10. So Slide 10, here, we are basically deep diving into our liabilities. And as you can see, as of end of March, we're looking at 3/4 of our interest-bearing liabilities being funded by 2 currently outstanding Eurobonds, so EUR 90 million Eurobond maturing in year 2028 and EUR 275 million Eurobond maturing in year 2030. Also, as you can see from this pie chart on the left-hand of the slide, we are now slowly tapping back into the Mintos platform. As of end of last year, our Mintos exposure was less than EUR 10 million. Now it's already EUR 20 million. And what's especially encouraging is the fact that we are funding this EUR 20 million size at a rate of 7.1% per annum. We will continue doing that and funding our net loan portfolio growth primarily by use of Mintos as well as other sources. Speaking of which on the other sources, our local currency funding from local lenders remains actually vitally important for the group, especially in the markets that are non-euro currency markets, such markets as Kenya and Uganda. So Kenya alone has shown excellent results. We have managed to onboard EUR 10 million worth of local currency funding in first quarter alone and now 85% of the total borrowings in such markets as Kenya is actually funded by local sources in local currency. That being said, we also have a very healthy pipeline of other funding sources to be unlocked in the following quarters, such as EUR 10 million bank loan in Uganda, for example, which we're expecting to be released by end of this month or beginning of June. And then also further funding sources in such markets as Georgia and Armenia as well. So this will -- as mentioned before, this will remain at utmost importance for our group to fundraise locally in local currency. And what is basically remains to be funded by euro loans that we will proactively hedge by use of derivative instruments. If we look at the covenant situation, so one word here and that stability. If you look at the interest coverage ratio, so we are at 2.3x as of end of March of this year, basically same ratio as you would see for the last several years now. Our net leverage was 3.8x, pretty much the same situation as it was for the end of year. And now also capitalization ratio. So we're looking at 23% as of end of March of this year, which is largely the same ratio as it was as of end of December 2025. Again, here, you'll see a slight compression compared to the other periods in the capitalization ratio, basically the same dynamics as you see -- as you saw in previous slide, in equity ratio. And this is mainly thanks to the fact that we're growing that loan portfolio. We are growing our asset base, all of which are productive assets, which will yield nice revenue and profits in future periods. Let's move on to the next slide, please now. So Slide 11 on the portfolio quality. Again, we start with the left hand of the slide. And first, we look at vehicle and device financing net loan portfolio. So we're looking at NPLs or nonperforming loan portion of total net loan portfolio here at 4.8% as of end of March. And on the consumer finance side, that ratio is even lower than that and was 3.5% as of end of March. Also on the right-hand side, you can see the developments over the's last 6 years now for both gross NPLs and net NPLs. So we're pretty much at the all-time low figures here. But of course, we need to also be mindful of the fact that we have added pretty much a huge volume of new loans issued, so all of which are currently and mostly current loans, and we need to be mindful of the portfolio quality in the later periods. And basically, we are really pretty much focused on the control over our NPLs in the upcoming quarters. That being said, we actually ended the quarter with one of the historically highest impairment coverage ratios. So our vehicle and device finance net loan portfolio was almost 100% covered. And our consumer finance business has more than 130% of impairment coverage or NPL coverage as of end of March of this year. Let's move on to the next slide, please. So here, we have a slide on our share performance and share performance development since the IPO, which happened during the last quarter of year 2024. So pretty much the share price has remained stable over these 1.5 last years. If you look at the P/E ratio, the return on equity, given all these metrics, it probably is fair to say that at least in management's mind, the share price does not fully reflect the potential of the company. That same opinion is shared by the analysts that are covering our share. And as you can see, 3 out of 4 analysts actually do expect or believe that a fair target price for our share would actually be more than EUR 3 per share. Let's continue with the next slide. So on this slide, we're looking back at the financial outlook with -- for the targets of this year and also a bit more information on the dividend. Let's start with the financial KPIs or goals. So at the time when the company was IPO-ing, it was end of year 2024, as mentioned before, we actually publicly announced financial goals for year '25 and year 2026. Year '25 goals in relation to net portfolio revenue and net profit before ForEx, you can see on the left hand of the slide. we were either exceeding them if we look at net loan portfolio or very -- we were very close to achieving them if we look at the revenue and net profit before ForEx for the last year. Now where do we stand this year and how we are developing during the first 3 months of this year? So the net loan portfolio, we're actually almost halfway in terms of achieving our annual goal already now. So we're looking at EUR 478 million, while the target for the full year was EUR [ 520 ] million. So we feel very comfortable in the company being able to meet the target or even exceed it for this year. If we look at the revenue, we're actually spot on. We're spot on at the run rate for this year to be able to safely achieve this EUR 315 million target for the full year. And lastly, on the net profit before ForEx, we're looking at EUR 11 million for the first 3 months of this year. Here, fair to say we are slightly behind the run rate that we need to achieve to meet the EUR 54 million goal for this year. But nevertheless, given the portfolio that we have built, we believe that this will yield high revenue and also profits in the upcoming quarters, provided we continue to have tight grip on the portfolio quality. Now a bit more details on the upcoming dividend payment. So the Annual Shareholders Meeting or AGM is expected to be held on 27th of May. In that AGM, the management is proposing to distribute EUR 4.3 million of dividends out of second half of year 2025 profits. So basically, 40% of profits earned during the second half of last year are expected to be distributed. Here, as always, we are moving in sync with our dividend policy, which actually prescribes the specific ratios that we can pay out in dividends given the equity ratio where the company would be for dividend payout. So now we're looking at approximately 18% of equity ratio post dividend payout. So that allows us to distribute 40% of dividends out of previous period profits. On the time line, the end dividend date would be 2nd of June, and the actual payout is expected to happen on 10th of June. All this is still to be confirmed during the AGM. And lastly, also kind of relatively interesting fact is that the company after IPO has already returned close to EUR 25 million of cash to our shareholders in the form of dividend. And again, we continue -- we expect to continue paying regular semiannual dividends to our shareholders also going forward. I believe we can move to next slide, and I'll hand over back to you, Modestas.

Thank you, Maris. So last slide of today's presentation, business outlook. And I'll also use this slide just to summarize all what was presented during today. So let's start with products and markets. Maybe starting with products. As we already presented, most of annual goals when it comes to product launches have already been achieved and then also we've been very active in this field over last year. So by now, we have launched installment loan products in all vehicle finance European markets apart from Georgia and Georgia has very different regulations. So we don't foresee it in the nearest future. So full focus there is in scale up now, but scale up, smart scale-up, calculated scale up -- and similar can be done -- can be said about device financing, which we have launched currently in 3 markets already. So finding the most optimal sales levels, underwriting policies and further scaling up as key priority when it comes to product development for this year. And on top of that, we'll still be launching maybe kind of smaller products addressing a bit wider needs of whether it could be car financing or whether it could be consumer financing products. But most significant launches, I would say, we have already taken place. So scale up is a key focus. And along that way, we'll also launch 2 new markets. I believe one will definitely be launched in the second quarter and probably the other one in third or fourth quarter. very important capital management. So you see that the growth is really at a high pace. So we need to make sure that we have a good sources where to borrow the money. And that Maris already presented, we're not only growing in Mintos, but especially I'd like to emphasize this local financing part and especially in the African part. So in many markets, especially where the growth is fast, Kenya is the best example. We are raising local debt faster than our portfolio growth. So meaning that overall ForEx exposure there is decreasing and our strategy stays the same, try to hedge as much as possible. And then obviously, the best hedge is always local financing source. So this will be kind of focus for the remaining 3 quarters as well. And again, repeating myself in terms of cost optimization exercise done in terms of cost-to-income ratio, we do see that we still have a potential. We do see that technology continues to help us to be more lean and efficient. And we do see that in upcoming quarters with potential to improve cost-to-income ratio going forward. So with that, I'm finishing today's presentation. Thanks, everyone, for joining. But don't leave yet. Now it's time for your questions. So handing over back to you, moderator.

[Operator Instructions] Does Eleving still plan to distribute at least 50% of net income by dividend, stock buyback?

Yes. So all in all, as we also, as a management, communicated during the IPO process, the company's kind of ongoing goal would be to maintain a 50% dividend distribution. So that is a goal which we are aspiring to. But that being said, it is important to say that we have a public dividend policy in place, which we need to follow and which we're following. So in the times of high growth phases like where the company is going through right now, when -- especially when the equity ratio would be below 20% post dividend payout, we would actually pay a lower ratio. So as it is being proposed right now at 40%. So -- in any case, we will be following our dividend policy, which sets clear boundaries for the dividend payout levels. But of course, the company's, again, kind of ultimate goal would be to return as soon as possible to the 50% payout ratio, provided the company's balance sheet and growth would support that.

Is there a plan to increase the dividend payout ratio in the foreseeable future?

I think same answer to this question. The plan is to follow our dividend policy, payout policy. Let's say, all the actions, all the activity that is being done currently by the management, by the company in terms of growing that loan portfolio, adding new markets are being done with the sole goal in mind to increase the profits of the company and by extension, also increase the dividends of the company as well.

Thank you. As I don't see any raised hands, we'll be continuing with the questions submitted in writing. What is the estimated employee count for the next 2 or 3 years?

Thank you for your question. I'll not be able to tell the exact number. as it depends on many factors, but you can see following that in our existing markets with an exception of Tanzania market, which was recently launched, we do not see a big expected employee growth number. So we do maintain -- we do expect that business will grow, maintaining existing, let's say, employee base. There may be some slight increases in certain markets, but in some markets, we do believe that automation and technology can fully sustain this growth. So it should not come from the existing market. And of course, the biggest growth will come from the new markets. We can already see that in Tanzania, a sizable amount of new employees will be added, but that is a bit harder to predict. It depends on when exactly we're going to get the license in every single market and then when we'll have like [ IT ] system ready. So kind of summing up from existing markets, there should be apart from new launch ones, there should be no significant employee growth.

Africa is one of the hardest hit regions from the Strait of Hormuz blockade. Kenya already faced fuel shortages. Do you see slowing vehicle finance segment in Africa and higher credit losses going forward?

Sure. So of course, we see effects in those markets. First of all, like the fact that fuel prices went up. So effects are there. In terms of default rates, we don't see them yet. It also worth to mention that prices of services provided by our customers, they also went up. So most of them work as taxi drivers and also the sources of transport which they compete. So would be like the private mini buses, they have also increased their prices. So short term, I think on unit economic basis, these customers -- not customers, but our customers and these entrepreneurs, they are dealing quite well. But of course, it's a bit hard to predict if this crisis will last for a very long period, how the overall economy will react. So -- but also from the demand side, we don't see that demand is kind of slowing down. We see still a very, very healthy demand of this product. And lastly, to mention that in some African markets, we already saw that some governments have made actions to help with that and both kind of making sure that there's no fuel shortages and as well as adjusting some of the tax rates short term. So very hard to predict what's going to happen. But so far, we don't see like a very alarming signs and the market is adjusting.

Do you have any medium-term financial targets?

So currently, the targets that we have publicly announced are the ones that you can find in the slide of the presentation we just discussed. So let's say, we have end of year 2026 targets. So net loan portfolio of EUR 520 million, revenue of EUR [ 315 ] million and net profit before ForEx, EUR 54 million. Of course, internally, we do have different goals in place, but nothing that's being announced publicly yet, probably closer to the end of this year or beginning of next year, the company also will announce public targets for the next cycle, so probably next 2 to 3 years. But that probably will happen later this year. As I said, currently, we operate with these targets, which I already mentioned.

What is the weighted average cost of debt in Q1?

Yes. So I would split the answer in 2 parts. So weighted average cost of debt for euro-denominated borrowings, which form -- by far, the vast majority of our funding sources. So here, we are probably looking at somewhere between 9% to 10%. And if you look at local currency financing, so that actually varies on a country-by-country basis, but think about low teens, so somewhere in the range of 12% to 13% blended on a country basis.

How has the FX effect developed in Q2 so far? Same as Q1 or better or worse?

Yes. Okay. question that makes for a very subjective answer. So Basically, I would say we're super early in Q2. So let's say, we're not yet halfway there. Soon we will be there. But so far, we see that the major currencies, I would say, in the broad terms, slightly worse than Q1 because we see that USD versus euro, namely USD continued to depreciate a bit during the months of April and May so far compared to strengthening during the first quarter. But let's say, again, we need to come back to our hedging strategy here and mention the fact that all the biggest markets, most kind of volatile markets have already been hedged by means of local currency borrowings or derivative contracts. So -- we have locked in fixed cost of currency exposure for most of our portfolio where we operate in non-euro markets.

What are your plans about buyback strategy? Some lockup periods for all shareholders ended or will end because of low liquidity, it can have huge pressure on the stock price.

Sure. So maybe first of all, worth to mention that this buyback strategy, I guess it will be potentially approved only during the AGM, but we have proposed such strategy so that company's management would have certain flexibility to buy back shares in the market if they are trading in our opinion, below low expected value. But again, this program is not to accommodate some particular existing shareholders' sales. It's more to reflect on some maybe global or macroeconomic activities, which might maybe kind of cause some overreaction in the market. And we do not intend to kind of correct a few percentage movements here and there. So this is definitely not for that. Yes, so that's just additional instrument. I think it's actually a good message to the market as well. And yes, some of the lockups for minority shareholders have ended also for majority will end, I believe, in a bit more than 6 months. But currently, the price is very stable. So probably management, and I believe that majority shareholders, they do believe that there's still quite a lot of value in the company and that value in the share price. So I would not expect somehow huge sell-off here, which would have a very negative price -- negative effect to the share price. But again, like do not want to speculate. And as a share buyback program, it is meant more to address really significant negative effects in a way kind of higher movements compared to what the share price has experienced lately.

All questions have been addressed. That concludes our Q&A session today. Participants, thank you for your active engagement. We will be looking forward to seeing you in our next calls.